Blockchain is a distributed database, parts of which are located in various nodes of a computer network. Blockchain technology is widely known in cryptocurrency systems, as it allows for secure and decentralized recording of transactions.

Blockchain technology allows you to maintain the accuracy and security of the data stored in it. Due to the storage of data in interconnected blocks, the transaction history (for example, cryptocurrencies) is irreversible. The technology itself was created by Stuart Haber and W. Scott Stornetta in 1991, but it became actively used only in 2008 with the launch of bitcoin.

How does the blockchain differ from the database

The structuring of information in databases is based on a different principle — the data is stored in the form of tables. At this time, the blockchain groups sets of information into blocks. Each block has a limited data storage space, and when it is filled, it closes and connects to a previously filled block — a chain of such blocks is called a blockchain. At this time, any new information is compiled into a new, not yet filled block, and an exact timestamp is assigned to each new block in the chain.

The possibilities of blockchain technology

The data that was recorded using blockchain technology is almost impossible to change, forge or hack due to the storage of transaction history or interactions with the data. In addition, the blockchain is managed in a decentralized manner, that is, each participant manages the database — this format is also known as distributed ledger technology, or DLT.

Indeed, without blockchain technology, it would be impossible to create a mechanism by which cryptocurrencies work. However, this format can also store data on legal contracts, government elections, identification of fortunes, or inventory of products manufactured or owned by a company.

First of all, blockchain technology increases security:

  • protects data from fraudsters;
  • provides transparency of stored data;
  • reduces other security risks.

ITGLOBAL.COM provides a comprehensive solution for integrating blockchain technologies into companies’ business models.

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